Existing information suggests that current call tariffs are not viable for telecommunication compani
Telecom companies have declared that the present rates for calls, data, and other telecommunication services are no longer feasible due to prevailing market conditions. These conditions encompass escalating energy expenses, challenges in acquiring foreign exchange, and more. Gbenga Adebayo, the Chairman of the Association of Licensed Telecommunication Operators of Nigeria, articulated this concern during his keynote address on Wednesday at the Nigerian Communications Commission's Nigerian Telecommunications Indigenous Content Expo in Lagos.
He emphasized that while deliberating on price adjustments might be challenging, it is imperative for the industry's sustained ability to provide communication services within the nation.
Adebayo remarked, "We must also address a difficult topic, one that is undoubtedly challenging but necessary. The existing pricing structure within the industry is no longer tenable. Essentially, we are operating at a loss. Although discussing this matter might be uncomfortable, the current approach is unsustainable. It's time to permit market dynamics to dictate pricing. Simultaneously, we need to reevaluate our pricing strategy to align with realistic parameters, as the present model is not viable."
Telecommunication companies have been advocating for price adjustments in response to escalating operational costs attributed to increases in diesel prices and the devaluation of the national currency.
During his speech, the ALTON chairman extended his congratulations to the newly appointed Minister of Communications, Bosun Tijani, and conveyed his best wishes. However, he underscored the paramount importance of preserving the independence of the NCC to ensure the triumph of the ICT sector in Nigeria.
Adebayo expressed his view that much of the present challenges plaguing the industry can be attributed to the undue politicization it has experienced. He elaborated that the outstanding USSD debt owed to banks could have been resolved if political considerations hadn't taken precedence.
He emphasized, "Our regulator should not be subject to political influences. The significant challenges we confront in our industry today are primarily the result of straightforward policy matters that have been entangled with politics.
"Let me touch upon the USSD debt matter for a moment. Initially, it was a straightforward commercial agreement, but it became entwined with political intervention, leading us to our current situation. The individuals currently addressing these issues, both within the NCC, the ministry, and CBN, were not responsible for the genesis of this problem.
"USSD is a service offered through a voluntary transactional arrangement. We offer the service, and in turn, we receive payment for the service provided. When we provide the service and don't receive compensation, we adhere to the established regulations. However, when policymakers intercede, it transforms into a predicament."
He strongly advocated that the NCC must be permitted to uphold its autonomy within the new administration.
Additionally, present at the occasion was Prof. Umar Danbatta, the Executive Vice Chairman and Chief Executive Officer of the NCC, who highlighted that the telecommunications sector hosts two of the most esteemed publicly traded entities in Nigeria, combining for a collective market capitalization surpassing N10.45 trillion.
He also disclosed that during the years 2021 and 2022, the commission yielded revenue surpassing $820 million from the auction and allocation of 3.5GHz Spectrum band licenses to three operators for the implementation of Fifth Generation (5G) services within the country.
The EVC, represented by Ubale Maska, the Executive Commissioner (Technical Services), highlighted, "To maintain and enhance the Quality of Service and Quality of Experience in Nigeria's telecommunications services, we need to adopt indigenous content and value creation throughout the telecoms value chain; otherwise, a rise in telecoms tariffs will become unavoidable."
The EVC went on to mention that the domestic SIM card sector has now reached a value of N55 billion after the prohibition of foreign SIM cards last year.
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